Press Release

Gateway Storage Company is in discussions with the European Investment Bank (EIB), the long-term financing institution of the European Union, regarding the Bank’s potential funding support of up to £350m for the construction of the Gateway Gas Storage facility in the East Irish Sea.

The Gateway Project aims to enhance the energy security of the UK and Ireland and contribute to the efficient functioning of Europe’s gas market. The storage facility will be built in salt caverns approximately 750m beneath the surface of the seabed and located 15 miles offshore, south west of Barrow-in-Furness, Cumbria. The Gateway facility will be connected to the National Gas Grid via a new gas compression station adjacent to the existing Morecambe gas terminals at Barrow. Subject to financing, commercial operation of Gateway is targeted for 2014.

In November 2008, Gateway Storage Company secured approval from the UK Government to construct the 1.5billion cubic metre gas storage facility. Gateway will add new capacity equal to approximately 30% of the UK’s current storage capacity; the new capacity is sufficient to meet five days of Britain’s average gas demand.  The capital cost of the project is approximately £600m. 

George Grant, Director of Gateway Storage said: “We are very encouraged by the progression of discussions with the EIB to approve a loan for the project of up to £350m.  These discussions represent a very welcome step in the current economic climate and underline the important contribution that Gateway Storage would make to the UK and European energy market.”

Financial advisers to Gateway Storage are Lazard.

Notes to Editors:

1. The promotion of sustainable, competitive and secure sources of energy is a key policy objective of the European Union. For this reason, the European Investment Bank has made lending to support Europe’s energy objectives a top priority, and listed the Gateway project in its pipeline of projects under consideration on March 31st 2009:
http://www.eib.org/projects/pipeline/2009/20090150.htm.

2. The European Investment Bank (www.eib.org) is the EU’s long-term financing institution promoting European policy objectives. Established in 1958, it operates in the 27 EU Member States and around 130 countries in the EU enlargement area of southern and eastern Europe; Russia and the eastern neighbourhood; the Mediterranean neighbourhood; Africa, the Caribbean and the Pacific; and Asia and Latin America.

3. Gateway Storage (www.gatewaystorage.co.uk) is a company that was formed to develop the Irish Sea gas storage project and is managed by Stag Energy. Stag Energy (www.stagenergy.com) is an independent company, based in Edinburgh. The company, established in 2002, has extensive experience of managing the development, construction and operations of gas storage and power generation projects in the UK and overseas.

4. Storing gas in salt caverns enables firms to retrieve gas rapidly to cope with spikes in peak demand. The British Geological Survey, in a report commissioned by the UK Government, highlighted a number of offshore areas suitable for salt caverns, including the Irish Sea and the Southern North Sea. In its report, the BGS specifically noted that Gateway’s site was located in one of the very best areas in the UK. Gas has been stored in salt caverns underground for many decades and is a well-proven, safe and secure method of storing gas.

5. The total cost of the Gateway project is approximately £950m, of which the capital cost is approximately £600m.  The overall costs include an allowance for cushion gas of close to £200m, which is an essential element of any conventional storage facility.

For further information:
Gateway Storage Company Ltd
George Grant
T:         0131 550 3380 / 07810 851029
E :        This e-mail address is being protected from spambots, you need JavaScript enabled to view it
or
Paul Taylor (Taylor Keogh Communications)
T:         020 3170 8465
E:         This e-mail address is being protected from spambots, you need JavaScript enabled to view it
Gas Storage - Latest News
view movie
The need for Gas Storage

Over the past 40 years, the UK has become reliant on gas for a major portion of its energy supply. This situation has evolved... More